Thailand Launches National Disaster Insurance Covering 30 Million Homes
Thailand's cabinet has approved a national disaster insurance system that will cover about 30 million homes against floods, windstorms, and earthquakes/tsunamis. The program, funded by a 15.5-billion-baht premium budget, provides immediate compensation and additional payouts after damage assessments. It aims to shift disaster response from post-event relief to advance risk transfer and improve government budget planning.
Under the national disaster insurance scheme, the public receives protection for both property and life. Coverage includes three major disaster types: flood, windstorm, and earthquake/tsunami. For flood damage to a residential building, policyholders receive an initial 10,000 baht payment without waiting for a full damage assessment, with additional compensation up to 90,000 baht after assessment, for a maximum of 100,000 baht per household per event. If a home is undamaged but isolated by continuous flooding for more than seven days, a 10,000 baht compensation is paid. For windstorm damage (including lightning), the initial payment is 5,000 baht, with additional compensation up to 95,000 baht after assessment, also capped at 100,000 baht. For earthquakes, volcanic eruptions, tsunamis, or underwater earthquakes, the same 5,000 baht initial payment applies, with additional compensation up to 95,000 baht after assessment, not exceeding 100,000 baht. The program also covers residential structures and permanent fixtures, but excludes movable furniture and electrical appliances such as air conditioners, televisions, fans, or decorative items.
